If future return on common stock is 14% and rate on T-bonds is 5% then current market risk premium will be
A. 19.00%
B. 9.00%
C. Rs 9
D. Rs 19
Answer: Option B
Solution (By Examveda Team)
Current Market Risk Premium = Future return on common stock - T-Bond= 14% - 5% = 9%.

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